1. Field of the Invention
The present invention relates to a method and apparatus for managing inventory with the aid of a programmable computer, and more particularly to a method and apparatus for receiving, sorting, marking, tracking, and selling distressed inventory which has been delivered to a distressed inventory central warehouse. The method and apparatus provides for the complete automation of the inventory management of a distressed inventory warehouse and the continual updating of inventory data records related to the distressed inventory as it passes through various stages within the warehouse.
2. Description of the Prior Art
Approximately 1% of all inventory shipped by freight carriers in the U.S. does not reach its intended destination or is not accepted by the buyer once it reaches its destination. This type of inventory is commonly referred to as "distressed inventory". Inventory often becomes distressed inventory because it was accidentally loaded on the wrong freight truck, damaged, or simply marked improperly.
Distressed inventory often cannot be feasibly reunited with the original inventory manufacturer or seller because freight carriers often do not immediately return to the place where they initially picked up the inventory. Therefore, it is common for freight carriers to deliver distressed inventory to centrally located distressed inventory warehouses that sort, store, redeliver or sell the inventory.
Once the distressed inventory is delivered to the distressed inventory warehouse, the distressed inventory warehouse must manage the distressed inventory and determine how to best deal with it. There are many unique problems associated with the managing of distressed inventory that are not encountered in the management of "regular" inventory. For example, regular inventory is typically delivered to a warehouse only after it has been ordered. Further, the ordered inventory will usually be clearly identified, typically in the form of documentation which accompanies the inventory (i.e., freight bills, labels, UPC code, etc). Yet further, the delivery dates and times for regular inventory is set well in advance of the delivery. In contrast, with distressed inventory, it is impossible to anticipate what inventory will be lost, damaged, etc., during shipping; therefore, it is also impossible to anticipate what types of goods will be delivered to the distressed inventory warehouse and when the distressed inventory will be delivered. Accordingly, distressed inventory warehouses must be constantly prepared to receive and manage all types of inventory, particularly unidentified inventory, at all times.
Another unique problem associated with the management of distressed inventory management is that much of the distressed inventory cannot be easily identified because it is either mislabeled or not labeled at all. Accordingly, the distressed inventory warehouses often must open all boxes of inventory and identify and sort the distressed inventory before determining how to best handle it.
Another unique problem associated with the management of distressed inventory is that many different types of inventory may be received by a single distressed inventory warehouse without advance notice. For example, it is not uncommon for distressed inventory warehouses to receive food items, clothing, vehicle parts, electronics, personal hygiene products, appliances, musical instruments, cleaning supplies and other similar goods. As can be appreciated, each of these types of inventory require different handling procedures. Thus, it is much more difficult to develop procedures for handling distressed inventory than for non-distressed inventory.
Another unique problem associated with the management of distressed inventory is that the distressed inventory is not always handled in conventional manners. For example, distressed inventory is often in such bad shape that it must be trashed or sold for scrap value. Additionally, some freight carriers require that certain types of distressed inventory be returned to them. Thus, distressed inventory warehouses must identify the distressed inventory that requires special handling and separate it from other types of inventory. Since different types of inventory must pass through different inventory management stages, it is exceedingly difficult to accurately manage and track all the distressed inventory received by a distressed inventory warehouse with known inventory tracking methods.
Another problem associated with the management of distressed inventory is that it is difficult to obtain and maintain sufficient records for use in pricing the distressed inventory for sale.
Methods and apparatuses for managing and tracking inventory are known in the art. However, none of these prior art methods and apparatus have been designed to take into account the unique difficulties associated with managing distressed inventory. Accordingly, there is a need for a method and apparatus for tracking inventory that is particularly configured for managing distressed inventory.